Page 34 - "Green Investments and financial technologies: opportunities and challenges for Uzbekistan" International Scientific and Practical Conference

“Yashil investitsiyalar va moliyaviy texnologiyalar: O‘zbekiston uchun imkoniyatlar va muammolar” mavzusida xalqaro
ilmiy-amaliy anjuman materiallari to‘plami (Toshkent, JIDU, 2025-yil 7-may)

• Women entrepreneurs to access micro-loans through mobile platforms,
increasing their participation in the formal economy.
• Rural households to receive government transfers and remittances without
needing physical bank branches.
• Smallholder farmers to obtain crop insurance or make digital payments for
agricultural inputs.
These effects enhance consumption, reduce income volatility, and stimulate
local economic activity, all of which are key contributors to GDP growth. FinTech
platforms have revolutionised credit intermediation, particularly for small and
medium enterprises (SMEs) that often face exclusion from traditional financial
institutions due to lack of collateral, credit history, or high operational risks. Through
AI-based credit scoring, P2P lending, and invoice financing, FinTech firms can
evaluate and fund SMEs with higher speed and lower overhead costs than
conventional banks. In China, the Alibaba-backed MYBank uses real-time e-
commerce data to offer unsecured loans to SMEs, disbursing over $100 billion in
digital credit in 2023 alone (Ant Group Reports, 2024). Evidence from the OECD
(2022) suggests that FinTech-enabled SME financing contributes to:
• Higher business investment rates.
• Improved inventory and cash flow management.
• Greater capacity for export participation.
FinTech-driven SME credit in India, for instance, has supported over 8 million
MSMEs, accounting for 30% of the country's GDP growth in the non-agricultural
sector (Indian Ministry of Finance, 2023). FinTech platforms have introduced
alternative mechanisms of capital formation, such as equity crowdfunding, initial
coin offerings (ICOs), and tokenisation of assets. These innovations bypass
traditional capital markets, allowing individuals and start-ups to raise funds directly
from the public. Platforms like Kickstarter, Seedrs, and Republic have enabled early-
stage businesses to access seed funding, often at lower cost and with faster
turnaround than through venture capital or banks. In the EU alone, equity
crowdfunding raised over €2.5 billion between 2017 and 2022 (European
Crowdfunding Regulation Report, 2023). Additionally, FinTech tools such as robo-
advisors and micro-investment apps have increased retail investor participation in
capital markets, further supporting economic growth through increased domestic
savings and investment. Digital savings platforms like Acorns and Stash have made
it easier for low-income users to automate savings, thus boosting the national savings
rate and improving household resilience. The expansion of the FinTech sector also
contributes to labour market growth, both directly and indirectly. Directly, FinTech
companies generate employment in areas such as:
• Software development
• Data analytics
• Cybersecurity
• Financial services

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